Vega-principles Of Management

PRINCIPLES OF MANAGEMENT VEGA PHARMACEUTICALS

HISTORY VEGA Pharmaceuticals (Pvt.) Ltd. Pharma City, 30 km Multan road, Lahore, Pakistan ―July 2004 ―Main area of operation: establishing Pharma now ―VEGA – 5th brightest star

Ophthalmic,

MISSION STATEMENT “ WE ENDEAVOUR TO MAKE SOCIETY HEALTHY, BY PROVIDING QUALITY PRODUCTS AT AFFORDABLE PRICES, OUR CORE STRENGTH IS A DYNAMIC, INNOVATIVE AND EXPERIENCED TEAM, WHICH ANTICIPATES AND RESPONDS TO CHALLENGES TO CREATE A DIFFERENCE.” Major elements of Vega’s mission statement ― Concern for public image ― Product and services ― Customers ― Technology ― Concern for employees

VISION “To be among the top Pakistani pharmaceutical companies & then go international”

EXTERNAL ENVIRONMENT MEGA ENVIRONMENT §I n t e r n a t i o n a l e l e m e n t §L e g a l p o l i t i c a l e l e m e n t §Te c h n o l o g i c a l e l e m e n t §E c o n o m i c e l e m e n t §S o c i o c u l t u r e e l e m e n t TA S K E N V I R O N M E N T §C u s t o m e r a n d c l i e n t s §C o m p e t i t o r s

INTERNAL ENVIRONMENT Organizational Culture

GOAL S

STRATEGIC GOALS ―Product expansion ―Increasing market share ―IMS report of 2007 ―To go international after its achievement of major market.

TA C T IC A L Target Zonal Revenue PKR 4.5 million

O P E R AT I O N A L Never been out of stock

ROLE OF COMPETITIVE ANALYSIS IN STRATEGY FORMULATION ―ENVIRONMENTAL ASSESSMENT

―ORGANIZATIONAL

ENVIRONMENTAL ASSESSMENT

―Porters five competitive forces model ―Rivalry: 25-30 competitors ―Bargaining power of customers ―Bargaining power of suppliers: foreign suppliers ―Threat

of

new

entrants: ministry-

ORGANIZATIONAL ASSESMENT ―SWOT ANALYSIS ―Strength: IMS figures, experienced team, healthy m arket share ―Weakness : infant company, limited financial resources, reliance on foreign suppliers for raw materials ―Opportunity : ministry has created barriers to entry: price flooring, ceiling, patent laws ―Threat : infant among multinational giants

―BCG GROWTH-SHARE MATRIX

Business Level Strategy Differentiation Strategy ―Strong market abilities ―Experienced team ―strong public relations ―co-operation from distributors ( channels)

Functional Level Strategy ―Play a significant role in supporting business-level strategy ―sales representatives designated different areas ―R&D engaged in innovation process ―Marketing department

Organizational Structure ―JOB DESIGN ―Work Specialization ―Job Rotation

―DEPARTMENTALIZATION ―VERTICAL COORDINATION ―Degree Of Formalization ―Span Of Control ―CENTRALISATION DECENTRALISATION ―HORIZONTAL COORDINATION

Versus

ORGANIZATIONAL CHART FUNCTIONAL STRUCTURE

CROSS FUNCTIONAL CONFLICTS

HUMAN RESOURCE MANAGEMENT All activities related to managing the human asset of the company e.g. attracting, maintaining and developing people in the employment relationship. Vega pharmaceutical has an effective HRM department. With HRM director, 2 managers and 4 assistant managers. The managers along with the assistant managers are responsible for requirement, planning, training , development, motivation of the

Motivational Methods used by VEGA ―Mobile phones with connections & bills paid for ―Bikes, cars, paid fuel expenditures ―Flexible work schedules at the office

LEADERSHIP TRANFORMATIONAL

Communication Process  verbal and non-verbal communication ―Email ―Conference calls ―Memos ―Sms ―Letters ―Manuals ―Newsletters ―Brouchers ―In-person meetings

CONTROL MECHANISM VEGA Pharmaceuticals has adopted an orthodox and professional approach as far as the control process is concerned, they carry out forecasting exercises looking in the future (future planning), stating what it wants to happen, observing the existing market forces, comparing the actual results with the planned objectives and then investigating causes of any difference and further deciding how to achieve their

RE C OM ME ND AT I ON S